How to seamlessly move your positions between protocols with DeFi Saver’s Loan Shifter?

What is DeFi Saver?

For those unfamiliar with the app, DeFi Saver is a non-custodial all-in-one DeFi management tool that offers advanced features and functionality for managing and optimizing your portfolio across major DeFi protocols.

What is a Loan Shifter?

The DeFi Saver’s Loan Shifter is a feature designed to make moving your position from one protocol to another or changing your collateral within the same protocol as simple as possible. This feature bundles up the entire process in one transaction, so the whole action will be executed instantly, allowing you to capitalize on better interest rates or optimize your collateral, and generally stay agile in a volatile market.

What is it mostly used for?

1. Loan Migration: When you want to move your existing loan from one DeFi protocol to another without closing your position.

2. Collateral & Debt Swap: When you want to change your collateral or debt assets without closing your position.

Why would you want to move your position in the first place?

The most common reasons are to get the benefits of lower borrowing APYs, gain access to different perks that other protocols are offering at some point, or to react to changes that protocols may enforce, for example, the recent offboarding of WBTC token.

What are the benefits of moving your position with Loan Shifter?

When you compare it to manually shifting your loan, Loan Shifter offers several significant advantages:

1. Time-saving

Because the whole process is abstracted away from the user, the entire process takes a couple of minutes to set up and execute, and when compared to doing it manually, it significantly reduces the time needed and the overall complexity.

2. Lower gas cost

The Loan Shifter bundles the whole set of actions into one transaction, therefore minimizing gas fees and making the process more cost-effective.

3. Reduced Slippage Risk

Since the whole process takes just minutes, it minimizes the time between transactions, therefore reducing the risk of slippage due to adverse market movements.

4. Better portfolio management

Because the Loan Shifter feature is an integrated part of the DeFi Saver ecosystem, you can easily choose where you want to move your position and instantly see how it will influence the rest of your DeFi portfolio, all within the same dashboard.

How to use the Loan Shifter feature?

Step 1: Connect Your Wallet

To use this feature, first you have to connect your wallet to the DeFi Saver app.

• Go to the DeFi Saver app.
• Click on "Connect Wallet."

Step 2: Access the Loan Shifter

• On the left side menu, find the Loan Shifter feature and click on it.

Step 3: Choose Your Position and Action that you want to execute

In the drop-down menu select the position you wish to shift and choose the desired action:

• Do you want to move the entire position to another protocol?
• Do you want to move only debt or collateral within the same protocol?
• Choose the type of collateral and debt that you want.

Step 4: Review and Confirm

• Double-check collateral amounts, new interest rates, and any fees.
• Click "Confirm" to proceed.

*Bonus info for those who want to know more

The Process Behind Loan Shifter

The smart contracts behind the Loan Shifter feature are set to instantly do a series of steps:

1. Initial calculation: Loan Shifter identifies your current loan details and calculates the necessary parameters for the shift, including collateral valuation and debt repayment.
2. Borrowing on the new Protocol: The smart contract initiates a new loan on the target protocol, borrowing the exact amount needed to cover your existing debt.
3. Repaying the existing Loan: The borrowed assets are used to repay your debt on the original protocol, unlocking your collateral.
4. Transferring Collateral: The collateral is moved to the target protocol and the new loan is created.

Conclusion

For anyone serious about DeFi, using the Loan Shifter feature in DeFi Saver is a must. Since It provides a simple, secure, and cost-efficient way to manage your loan positions across different protocols, it will help you stay flexible in volatile markets.

Whether you're optimizing interest rates, adjusting collateral, or using perks that some protocols are providing, the Loan Shifter feature will help you do it in a better way.

Check out more at the DeFi Saver app.